developer Joe O'Reilly, famous for developing the Dundrum Town Centre, has opened negotiations with NAMA about his borrowings as the agency examines the business plans of the top 10 developers.
"Discussions are taking place with the company's lenders, including the National Asset Management Agency (NAMA), regarding the company's borrowings,'' state the auditors to Mr O'Reilly's company, Teba.
Most of Mr O'Reilly's companies don't have to publish financial information as they have unlimited liability status, but they are still required to publish an auditor's report. In this case the report is submitted by BDO, the accountancy practice, to the directors.
Teba incurred "significant losses in the year ended December 31, 2008, leaving the firm with a negative shareholders' fund position. This means shareholders have no call on the equity of the company at this time.
"The company's ability to continue as a going concern is dependent on the continued support of its lenders,'' state the auditors. The company may be required to hold an egm because its liabilities are in excess to its assets, they add.
Every major developer has submitted to NAMA what is known as a debtor business plan and these are being considered over the summer months. Final decisions on what companies are viable for the future are expected to be taken in the coming weeks.
Mr O'Reilly is most associated with two companies -- Chartered Land, a commercial development company and Castlethorn Construction, a residential house builder, most associated with Adamstown, near Lucan.
Chartered Land, set up only four years ago, is behind some of the largest retail complexes in the country, including the Pavilions in Swords and the Dublin Central scheme, due to open on O'Connell Street in 2013 at a cost of €1.25bn.
Anglo Irish Bank is a major backer of Mr O'Reilly and provided his firms with loan finance in the last year, according to land registry records.
Dundrum Town Centre is the largest shopping centre in the country and will be one of the largest in Europe if a second planned phase gets built. Mr O'Reilly's association with such a large asset puts him in a strong position with NAMA negotiators.
While Mr O'Reilly has interests in development land, most of his assets are not speculative in nature and are fully leased out with cash flow coming in.